NE BUSINESS BUREAU
CHENNAI/NEW DELHI/MUMBAI, FEB 2
Finance Minister Nirmala Sitharaman on Saturday presented Union Budget 2025 focusing on key pillars of education, infrastructure, youth, farmers, women, economically disadvantaged, middle-class, MSMEs, start-ups, STEM and AI upskilling. What has been very welcome is the significant relief provided to the middle class.
- Overall it benefits all the stakeholders in the economy and a very positive budget: Industry captains
- Ensuring innovation drives progress and positions the nation as a leader on the world stage: Ajay Vij, Senior Country Managing Director, Accenture in India
- Extension of Jal Jeevan Mission until 2028 will accelerate universal access to clean and safe drinking water: Raveendra Bhat, spokesperson, Grundfos
What has been very welcome is the significant relief provided to the middle class. Consumption is about 60% of the economy, so providing a boost to that was much required at this time… Overall it benefits all the stakeholders in the economy and a very positive budget, said industry captains.
This will help in boosting business of companies in banking, IT, manufacturing, retail, pharmaceuticals, finance, AI, EV, automobile sectors.
Here are some of the reactions from captains of all sectors.
Move to set up Centers of Excellence for Artificial Intelligence is praiseworthy
Aparna Iyer, CFO, Wipro Limited, said:
“The Union Budget prioritizes economic progress by placing a strong emphasis on tax reforms, fostering innovation, and skills development, without losing sight of the fiscal deficit target. With AI becoming an essential tool for a tech powered economy, it is heartening to see the introduction of Centers of Excellence (COE) for Artificial Intelligence in education. To position India as a leader in the global AI race, it is imperative to prioritize investment in STEM talent. We also have the digital infrastructure, and the talent pool required to cultivate a thriving startup ecosystem capable of propelling innovation. To unleash this potential, it is also important to offer financial support and streamline the process of conducting business to bolster the startup community. The Fund of Funds for Startups (FFS) will provide the impetus to boost this ecosystem.”
Allowing 100 pc FDI in insurance will attract global capital
Anand Roy, MD & CEO, Star Health & Allied Insurance Co. Ltd, said:
“The 100% FDI allowance in insurance is a welcome move that will attract global capital, enhance competitiveness and efficiencies, and help expand insurance coverage in India where penetration remains below 5%. This aligns with IRDAI’s vision of ‘Insurance for All by 2047’, demonstrates the government’s commitment to financial inclusion and will further strengthen India’s economic position. Additionally, eliminating customs duty on 36 critical medications, including cancer will make life-saving treatments more affordable and accessible.”
FM’s reforms to boost education accessibility for youth
Sagar Kaushik, Associate Director, Growth, Propelld, said
“We would like to congratulate the Finance Minister for including transformative reforms to boost education accessibility for India’s youth. The increase in medical and other seats in medical institutes, targeted focus on Centre of Excellence for AI for education, the Atal Tinkering labs in government schools and skill development avenues are initiatives to help build India’s knowledge base – a crucial element of a robust economy. Personal tax reforms and removal of TCS for remittance on education purposes will help parents to save for their children’s education by investing prudently.”
Medical seat increase, more focus on AI learning are visionary
Nikunj Agarwal, Head – Fund Raise, Finance, Alliances, Propelld, said:
“We welcome the transformative reforms to improve accessibility and affordability in the education sector. Seat increase in medical institutes, increased focus on AI learning, removal of TCS on Education Loans up to Rs 10 Lakhs and increased funding will boost the education lending industry. It will provide more opportunities for students, relieve parents struggling with education inflation costs and drive more investments within the industry.”
Strategic investments in AI will create future-ready workforce
Sindhu Gangadharan, MD, SAP Labs India, said:
“The 2025 Budget underscores India’s commitment to strengthening its digital and innovation ecosystem through strategic investments in AI, skilling, and talent development. The ₹500 crore allocation for a Centre of Excellence for AI in Education is a transformative step toward integrating AI-driven solutions into learning frameworks, and equipping the workforce of tomorrow with future ready capabilities. With over 1.9 million professionals employed by GCCs in India, continued investment in skilling initiatives will not only drive business growth but also contribute to broader societal progress. At SAP Labs India, we believe that a strong partnership between industry, academia, and policymakers is essential to translating these initiatives into tangible impact. By advancing AI-driven education, deepening SaaS expertise, and cultivating a globally competitive talent pool, India is poised to shape the future of enterprise technology and digital transformation on the world stage.”
Ensuring innovation drives progress and positions the nation as a leader on the world stage
Ajay Vij, Senior Country Managing Director, Accenture in India, said:
“The government’s focus on leveraging technology as a catalyst for growth is key to propelling India towards its global aspirations, ensuring innovation drives progress and positions the nation as a leader on the world stage. The announcements to set up five National Centres of Excellence for skilling, Atal Tinkering labs to foster innovation, Deeptech Fund of Funds and setting up of the CoE in AI for Education will create a systematic and progressive movement towards building future-ready skills needed for an AI economy. These will not only harness the power of emerging technologies to unlock innovation but also drive sustainable growth for the country. With responsible use of gen AI expected to add an extra $675 billion in economic value to the country by 2038, these measures will help build a future where technology and human potential go hand in hand.”
Extension of Jal Jeevan Mission until 2028 will accelerate universal access to clean and safe drinking water
Raveendra Bhat, spokesperson, Grundfos (Water Utility), said: “The Union Budget 2025-26 underscores the government’s commitment to sustainability, infrastructure development, and inclusive growth. The extension of the Jal Jeevan Mission until 2028, with an enhanced outlay, is a welcome move that will accelerate universal access to clean and safe drinking water. This is also a critical step towards enhancing water security and sustainable water management in rural India. The introduction of urban sector reforms and the Urban Challenge Fund further reinforces the focus on water and sanitation, which will be instrumental in strengthening urban resilience. By fostering public-private collaboration and prioritizing sustainable development, this Budget lays a strong foundation for a more resilient, resource-efficient, and water-secure future for India.”
